Romanian MP Drafts Law Introducing 0.5% Wealth Tax On Net Worth Topping EUR500,000

The draft law states that residents will be liable to the wealth tax on all assets in Romania and abroad, while non-residents will be liable on their Romanian assets while observing international regulations, to avoid double taxation.

The draft also states people liable to the wealth tax have until June 30, 2010 to submit with fiscal authorities a statement on their household's wealth existing on December 31, 2009.

The proposed tax would be levied on real estate, securities, income and other assets belonging to an individual, their spouse and underage children. The draft law also stipulates tax deductions for buildings in the national cultural patrimony, furniture (except antiques), copyright, intellectual property rights, financial investments (life insurance, treasury bills), annuity, private pensions, equity owned in the company where the taxpayer unfolds their core activity, farming machinery and equipment.

The social democrat MP said in the draft's substantiation note that France, Norway and Switzerland have introduced similar taxes, ranging from 0.55% to 1.80% of a household's wealth exceeding a certain threshold.

Surupaceanu said he has already been harshly criticized for his initiative, adding he expects further rebuke from people targeted by such a tax or rich people who have anything to hide. He said the draft law is based on the principle of transparency and would oblige everybody to submit wealth statement, not just public officials and managers in state institutions.

The social democrat also said the wealth tax has little chance of being adopted by Parliament and called on the media to pressure politicians into passing it.

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